Previous year question paper 2017-SET 1 0
SECTION A 1.The demand of a commodity when measured through the expenditure approach is inelastic. A fall in its price will result in: (choose the correct alternative) (a)No change in expenditure on it. (b)Increase in expenditure on it. (c)Decrea in expenditure on it. (d)Any ohe of the above. 0 OPTION (C) 2.As/we move along a downward sloping straight line demand curve from left to right, pride elasticity of demand: (choose the correct alternative)  a)remains unchanged goes on falling goes on rising (afalls initially then rises OPTION (B)
SECTION A 3.Define market demand.I1] 4.Average revenue and Price are always equal under:(choose the correct alternative) (a)Perfect competition only (b)Monopolistic competition only (c)Monopoly only All market forms (Option d) 5.State any one feature of oligopolyIl]
SECTION A 6.Distinguish between microeconomics and macroeconomics. 7.State the meaning and properties of production possibilities frontier. 8,show that demand of a commodity is inversely related to its price. Explain ith the help of utility analysis. 131 OR Why is an indifference curve negatively sloped? Explain
SECTION A 9.Explain the conditions of consumer's equilibrium under indifference curve approach. 10.State different phases of the law of variable proportions on the basis to total product. Use diagram. OR Explain the geometric method of measuring price elasticity of supply. Use diagram. 11.Explain the 'free entry and exit of firms' feature of monopolistic competition.
SECTION A 12.When price of a commodity X falls by 10 per cent. Its demand rises from 150 units to 180 units. Calculate is price elasticity of demand. How much should be the percentage fall in its price so that its demand rises from 150 to 210 units?: 0 13.Complete the following table:  OUTPUT Total Cost Average Variable cost Marginal Average cost fixed cost 0 30 20 68 84 2 18 4 18 125 19 6
SECTION A 14.Good Y is a substitute of good X. The price of Y falls. Explain the chain of effects of this change in the market of x. OR Explain the chain of effects of excess supply of a good on its equilibrium price. 15/Given below is the cost schedule of a product produced by a firm. The market price per unit of the product at all levels of output is Rs12. Using arginal cost and marginal revenue approach, find out the level of quilibrium output. Give reasons for your answer: Output 1 2 3 4 5 6 Average cost 12 10 10 10.4